Kalshi, a prediction market platform based in New York, has pulled in $185 million in a fresh Series C funding round, pushing its worth up to $2 billion. This cash injection stands as a big step for the company as it aims to become a key player in the world of financial and event betting.
Kalshi Raises $185 Million in Paradigm-Led Round, Aims to Broaden Access and Tech Capabilities
The newest funding round, with crypto-focused venture firm Paradigm at the helm, attracted support from big-name investors like Sequoia Capital, Multicoin Capital, Bond Capital, and Neo. Citadel Securities’ CEO Peng Zhao also chipped in. This marks Kalshi’s seventh fundraising effort since it started in 2019 and its first since early 2022.
Tarek Mansour, CEO and co-founder, said they will use the fresh cash to beef up the company’s technological infrastructure and grow broker partnerships, reported The Wall Street Journal. You can already access Kalshi’s event-based futures contracts through platforms such as Robinhood and Webull. They are planning to team up with more than a dozen extra brokerage services soon.
Mansour and Luana Lopes Lara started Kalshi, a platform where people trade on real-world event outcomes. These range from election results and economic data to sports games and even weather patterns. Users buy and sell yes-no contracts betting on whether certain things will happen.
Mansour pointed out that Kalshi attracts talent not just for money, but because it aims to create what he calls “the most important financial market in the world.” He admitted though, that the company could not match traditional Wall Street firms on pay alone, which is why stock options play a big role in employee compensation.
Prediction Market Kalshi Overcomes Key Legal Challenge, Presses Ahead with US Expansion
Kalshi’s growth happens while facing legal and regulatory challenges. The platform overcame a big obstacle when the US Commodity Futures Trading Commission stopped appealing a court decision that allowed Kalshi to offer contracts on political events. This legal victory came after the platform’s success during the 2024 US presidential election, when it saw trading volumes jump.
Even with federal approval, Kalshi meets resistance from regulators in states like Nevada and New Jersey regarding its expanding range of sports-related markets. The company claims its federal license lets it operate across the country, sidestepping state gaming limits.
Kalshi’s quick expansion happens as its competitor Polymarket gets ready to raise $200 million at a $1 billion valuation. Polymarket differs from Kalshi by not operating under a US license and limiting American users.
As investors show more interest and regulatory paths become more defined, Kalshi’s supporters are wagering that prediction markets might soon turn into a common financial tool, especially among younger traders attracted to high-stakes real-world bets.